BY NKECHI NAECHE—ESEZOBOR—The Central Bank of Nigeria (CBN), on Tuesday revoked the operational licences of Aso Savings and Loans Plc and Union Homes Savings and Loans Plc.
According to the apex regulator, the action was taken in the exercise of the powers conferred on the CBN under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020 and Section 7.3 of the Revised Guidelines for Mortgage Banks in Nigeria.
READ ALSO: ZULDAL Microfinance Bank Is Not Licensed — CBN
In a statement issued on Tuesday, the Acting Director of the Corporate Communications Department of the CBN, Hakama Sidi Ali (Mrs.), said “ the affected institutions violated various provisions of BOFIA 2020 and the Revised Guidelines for Mortgage Banks in Nigeria,” Sidi Ali said. “These include failure to meet the minimum paid-up share capital requirement, having insufficient assets to meet liabilities, being critically undercapitalised with capital adequacy ratios below the prescribed prudential minimum, and non-compliance with several regulatory directives.”
According to CBN this is part of its efforts to reposition the mortgage sub-sector and entrench compliance with applicable laws and regulations,
The apex bank further reiterated its commitment to safeguarding the stability of the financial system and ensuring that all regulated institutions operate in a safe, sound and compliant manner.
